If you’re planning to sell your detached house, don’t worry — this point does not apply to you. However, if you’re selling an apartment, this regulation is relevant. It can sometimes come as a surprise when the notary, at the time of executing the sale, asks whether the property has ever been rented or whether you own multiple units in the building. So what does this have to do with selling your apartment?
The LDTR is the Law on the Demolition, Transformation and Renovation of Residential Buildings. Its purpose is to preserve housing and existing living conditions in Geneva by restricting, among other things, the sale of apartments intended for rental that fall under categories of housing currently in shortage. This law aims to maintain a certain number of rental units in the canton to meet the needs of a population segment that cannot afford to become homeowners. As a result, any apartment intended or previously used for rental and falling within a category of properties subject to housing shortage must obtain a permit to sell (“autorisation d’aliéner”) before it can be sold. This permit is requested by the notary handling the sale, and the related costs are borne by the seller.
Note that if your property has already received a sale permit in the past, there is no need to request it again.
This permit is generally granted when the building was originally constructed under the condominium ownership regime (“PPE”) or if it has been part of a PPE since before March 30, 1985, and your unit was already sold individually before that date. If that is not the case, then two options remain to obtain the permit:
› Demonstrate that your private interest outweighs the public interest (e.g. liquidation of a matrimonial property regime or an estate, relocation outside the canton, the need to comply with a debt restructuring plan);
› Sell the apartment to your current tenant, provided they have been living in the unit for at least 3 years and 60% of the other residents in the building give their consent.
Be aware, though, that it’s not always this straightforward. There are various ambiguous situations that require expert analysis, such as when a seller owns several units in the building affected by the LDTR. In such cases, the permit may be conditional upon selling all units at once. This is referred to as a block sale, always with the aim of preserving the rental status of the apartments.
It is therefore crucial, before listing your apartment for sale, to research its regulatory history. Our experts are here to support you through this process.
Excerpt from our guide: Selling Your Home in 42 Questions